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Property investors who bought when everyone else was running away are now reaping the rewards
Topic Started: 25 Aug 2014, 06:15 PM (3,750 Views)
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The investors who bought when everyone else was running away are now reaping the rewards

Todd Hunter | 21 August 2014

I never in my wildest dreams thought that I would be able to buy quality property in Sydney under $300,000…

But the GFC awarded me this moment in time that we absolutely took advantage of it. Campbelltown (Macarthur Shire) was the spot.

But why Campbelltown? It made for some great buying, simple!

The south-western Sydney location had all the ingredients of a great investing location with a fast growing population, great accessibility to employment in Sydney CBD or growing commercial and industrial sectors in Minto and Hoxton Park through either the M5 freeway or by train.

The last key ingredient was the GFC. This caused house prices to drop dramatically and consumer confidence to go out the window, allowing me to have no competition with other buyers and allow for some pretty low offers to secure some great deals.

This all happened for us in 2009. I was that confident in the area that I purchased eight properties there. Well, that’s all the past and now is what we want to all hear about, the results.

I am glad to say that we have had a few investors recently sell their properties in Campbelltown for what I would call “very impressive” results.

We were that confident, we even filmed the first property to be auctioned and it went better than expected!

The reason for some of our clients selling is to grab the profits they made from their investment property and pay down their home loan in a lump sum. Imagine having a home loan for $300,000, being able to drop $100,00 plus onto it in one go, making it $200,000.

Wouldn’t that increase your cash flow dramatically?

With a quick loan re-adjustment, it sure would!

But, you don’t stop there – now your cash flow has increased along with the available equity in your home, you go back out and buy two or three properties.

When two of those properties mature in value, you do the same and pay off your home loan in full!

Since this, we’ve had another great result with a client selling their house we purchased for $298,000 and sold for $412,000.

Back to the story, I congratulate these investors doing what most wouldn’t – invest when everyone else ran away and they will reap the rewards for doing so.

Read more: http://www.propertyobserver.com.au/forward-planning/advice-and-hot-topics/investor-stories/34776-the-investors-who-bought-when-everyone-else-was-running-away-are-now-reaping-the-rewards.html
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Chris
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Author of this is a director and founder of this property investment company

http://www.wheregroup.com.au

Makes this article worth ziiiiiiiiiiilch.

Surely there are more credible thought provoking articles that can be posted Alex. Or is this considered paid advertising, if so I might of just out more traffic to this bloke by pasting the company.

Oh well :hmm:
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Chris
25 Aug 2014, 07:15 PM
Surely there are more credible thought provoking articles that can be posted Alex.
http://australianpropertyforum.com/search/?c=4&mid=3168802
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The last key ingredient was the GFC. This caused house prices to drop dramatically and consumer confidence to go out the window, allowing me to have no competition with other buyers and allow for some pretty low offers to secure some great deals.
GFC was great time to buy, this when Steve Keen and other bears panic selling, good bargain buying from frightened bear sheep!!!
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szokolay
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Chris
25 Aug 2014, 07:15 PM
Author of this is a director and founder of this property investment company

http://www.wheregroup.com.au

Makes this article worth ziiiiiiiiiiilch.

Surely there are more credible thought provoking articles that can be posted Alex. Or is this considered paid advertising, if so I might of just out more traffic to this bloke by pasting the company.

Oh well :hmm:
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The south-western Sydney location had all the ingredients of a great investing location with a fast growing population, great accessibility to employment in Sydney CBD or growing commercial and industrial sectors


I wonder where he gets his information on employment, commercial and industrial growth, the chamber of commerce? The cornicopian guild? These spruiking stories do become tiresome sometimes don't they Chris. It's all rainbows and pots of gold but the fundamentals are 6 years out of date.
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van
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I didn't think property prices would have gone up after the GFC as I did not expect the RBA and Government to double down on all the mistakes of the past that caused the GFC.

Two ways to look at it.....property prices falling because there is too much debt or property prices falling because there is not enough debt. RBA and Government will always take the latter view.



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noopsy05
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i bet most of the bears on this page didnt panic sell during the GFC. I reakon they never purchased a house then when the boom happened they just said they will wait until the bubble bursts ever since.

On another topic, my investment property is 7 years old today. Purchased for $375,000 got valued today at $560,000. Still needs another $190,000+ for that stupid "property prices doubles every 7 - 10 years' ad to be right hahahaha looks doubtful
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Shadow
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Yes... the times when the bears are panicking the most are generally the best times to buy.

Steve Keen is famous for panicking in 2008. I was buying in Sydney around the same time Steve Keen sold up.

And then Crazy Ted panicked and sold in 2012 just before the most recent Sydney boom began...

Posted Image
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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SittingOnDeFence
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What about property investors who bought after seeing a stall in their local shopping centre, or getting a leaflet handed to them on the street?
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RealEstateAgent
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What all you investors claiming yourselves as 'bulls' don't understand is that all the smart money has/is close to already getting out of this bubble. That is generally what investors do. They sell when others are buying and buy when the market has f#cked itself over. And repeat.

I am an agent and selling plenty, I sold all my personal investments over the last 12 months. All these eager uneducated buyers at the moment completely confirm this is all going to come crashing down very soon. The panic is amazing in Sydney.. "I have to get in!" "I might miss out!" "Ok, just another $50,000 and if not I walk away." ... but they never do.

Every time I look into the eyes of the 25 year old girl signing her life away on the contract I think 'you poor thing, you don't know what's coming' Their response is usually "Mum and Dad said this is the best thing to do".

The agent world all know what is coming, why do you think we're not out buying more investments ourselves?

We've all done well out of this latest run up in prices, get out whilst your equity is still safe.

I'm much more comfortable with the circa $600k capital gains sitting in gold, cash and property OS at the moment.

You have been warned.

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